I'm LMAO about the auto company CEO's showing up in their corporate jets

[FMCoug]

Talk about out of touch. Just like Al Gore and the Kennedy's flying all over the country in a private jet to give their environmental speeched.

[Soccermom]

Talk about out of touch. Just like Al Gore and the Kennedy's flying all over the country in a private jet to give their environmental speeched.

I think it is hysterical too. I won't be laughing if they get a bailout though.

[venkman]

Yes, bad PR move.

At any rate, the whole thing has become political now with both sides seemingly willing to let GM fail. Both sides saying the other party needs to bail them out. The democrats could free up the existing $25mil for "green technology" but they won't. I think they'd rather have GM failure as a weapon to use against their GOP rivals than to bail out their UAW buddies.

[Pheidippides]

I loudly applauded the idea of a financial rescue package (anybody who called it a "bailout" didn't understand what the plan was - although the PR was so poor, that I won't blame them).

I equally loudly boo and hiss at the idea of an auto manufacturer bailout. I agree with Mitt - let them fail.




Full disclosure:

I have ties to and understanding of the financial markets. This can be an argument either for my understanding of how credit markets work, or for personal bias. You make the call.

[CardiacCoug]

If Toyota can pay American workers an average of $48/hr to make cars, why should the federal government subsidize the Big 3 in paying their workers $75/hr. (I think I saw numbers along those lines, maybe not exact).

Mitt Romney is right on this one. You know, he'd make a good President.

[Rickomatic]

All hail Mitt!

[PaloAltoCougar]

I wish I'd been on the Congressional panel. I would have said to the CEO's, "Look, the taxpayers will bail you out only if they have confidence you're going to survive long-term. You're only going to survive long-term if you are proficient in marketing your products. You're here "marketing" for the most important capital/loan infusion of your lives, and this is probably the greatest test of your marketing skills that you will ever have. You could have driven here in a hybrid and stayed in a Holiday Inn Express. But in a time of severe economic distress, while you're pulling down $28 Million a year, you chose to come here on your G-4 jets, and you have the chutzpah to hold out a tin cup to the American taxpayer? Sorry, gentlemen, but if this is the best you can do at marketing, you are obviously unfit for office, and your companies have no hope for long-term success. If your respective boards of directors would like to send new CEOs with marketing savvy far superior to yours, we'll talk. Until then, have a nice flight home." .

[LA Ute]

You're here "marketing" for the most important capital/loan infusion of your lives, and this is probably the greatest test of your marketing skills that you will ever have.

Yup. I think a carefully structured and managed Chapter 11 proceeding would be a wonderful thing. Heck, law students would be studying that one for decades to come. Alas, they will be bailed out. I guess that's how we treat companies in America who make products no one wants and give their employees benefit packages that are unsustainable.

[Pheidippides]

Alas, they will be bailed out.

My tea leaves are currently reading the other way (although I will grant they are not always reliable). Or at least I sure hope you are wrong. Chapter 11 would be a fantastic thing for the Big 3, and if the Chapter 11 turns into a Chapter 7, well, that's just too bad.

As one person put it (I think it may have even been a congressman), when are they going to start making cars the American People like?

[venkman]

My tea leaves are currently reading the other way (although I will grant they are not always reliable). Or at least I sure hope you are wrong. Chapter 11 would be a fantastic thing for the Big 3, and if the Chapter 11 turns into a Chapter 7, well, that's just too bad.

As one person put it (I think it may have even been a congressman), when are they going to start making cars the American People like?

I think it's more than just too bad, it would be devastating. The "southern" auto industry is largely assembly - the engineering, knowledge, r&d are in the foreign countries. To lose that in America is a big deal, IMO.

It basically comes down to cost structure. The reason American cars are behind in technology and quality of materials (people don't like them) is that it cost a couple of grand more to make and American car. Thus the "cheap" feel, less $ available for r&d, longer model lifecycles, etc.

Union pay, pensions, health insurance for life, job bank, all have to go away. They have to get leaner and smaller. The detroit 3 know this, but it's easier said than done. The UAW has had them by the short hairs for years. Chap 11 may be the answer, but the gov't needs to take control and get the UAW to fall in line quick so a Chap 7 doesn't happen. The good thing about Obama is that it may take a dem to break the stranglehold unions have on our auto industry. Sort of like it took a rep like Nixon to open up China.